Essential Considerations When Buying Property in the UK

By HopwoodHouse, 30 January, 2018

The UK has always been a popular market for the rest of the world, but current trends seem to show that there has never been a better time to buy British.

The UK property market has long proved to be an exciting market for many investors and so an increase in mortgage options for expatriates and overseas investors has gone a long way to attracting buyers to the vast array of new developments that the country has to offer.

The UK Economy

The British economy has proved to be a relatively stable one, and with interest rates remaining low coupled with affordable housing outside of London the investors of the UAE are starting to sit up and take notice.

When making a UK property investment, it is worth remembering that in real terms, property prices in the country have fallen compared with the prices seen ten years ago. The difference in prices across the country is astounding. The high prices of London might be replicated across the south of the UK, but there is much more for your money when you start to head north.

When investing in British property you need to ensure that it is an asset that will work in your favour. Your rental income needs to not only pay for your mortgage but also contribute to your monthly capital and interest repayment costs. Knowing these numbers before you start will help you to identify what rent you need to achieve and what property is likely to achieve this for you.


Getting a mortgage is never simple and many UK lenders tend to see buy-to-let investments as high-risk propositions. This could lead to you being turned down or given high monthly repayments, so try to get an agreement in principle first in order to help you see what you can afford to borrow and restrictions will be put on you. Estate agents will want to see that you have finance in place before making offers on properties.

The UK currently offers some good buy-to-let mortgages for expatriates and foreign investors, and some rates are as low 2.74%. UK and offshore lenders are now offering mortgage with a minimum £100,000 loan and a loan-to-value up to 75%.

Choose Your Location

The Northern Powerhouse is the area that many UAE investors are currently flocking to thanks to rental yields of between 5-7%. Property investments in Manchester and Liverpool are amongst the highest yielding areas with a rental price growth of 7.53% in Manchester last year alone.

When choosing where to buy your property, you need to research the local area and understand what it offers. You should consider whether it is popular with commuters, what the transport links are like, whether there are good schools nearby and is at an area that is popular with students.

As rental yields can vary greatly across the country, it is important that you choose an area with a strong rental demand and buy a property that meets the needs of the market. You should also keep your exit strategy in mind and make sure you choose something that not only makes you a monthly profit, but also a capital one.


Remember, you are not buying a house for you to live to in, you are buying one to make you money and that has a different set of requirements. Keep in your mind that your investment is a business deal and therefore always buy with your head not your heart.